Bringing a sudden move in Philadelphia’s real estate vertical, shopping mall developer PREIT sold off Exton Square Mall on March 18. The Pennsylvania-based developer gave away its 52-year-old property to Abrams Realty, which now plans to turn it into a community-centered hub.
Highlights
- Philadelphia’s Exton Square Mall was sold to Abrams Realty on March 18.
- PREIT sold off the five-decade-old property for $34.2 million.
- Abrams Realty plans to turn the shopping site into a community hub having retail stores, residencies, offices, dining, and entertainment space.
Exton Square Mall Sold to Pennsylvania-based Abrams Realty
On March 18, the owner of Moorestown and Cherry Hill malls, PREIT, sold its Exton Square Mall for a whopping $34.2 million. The buyer, Abrams Realty, plans to turn the five-decade-old shopping center into a mixed-use development.
Describing the suburban Philadelphia-based mall as “underutilized,” Abrams Realty wants to develop it “into a walkable, community-centered hub.” This newly developed establishment in the Chester County site is expected to have retail stores, offices, residencies, dining, and entertainment space.
During announcements of selling Exton Square Mall, PREIT noted that it was not one of its “core malls,” which do have its other South Jersey-based developments. The Pennsylvania-based developer added that its “struggling” mall had only 62% occupancy in spring 2024.
These developments have come in the wake of PREIT’s bankruptcy loss worth over $900 million. Explaining the reasons, the Pennsylvania-based real estate company pointed out high interest rates and e-commerce shifts during the pandemic.
Previous Properties Sold By PREIT
The latest development regarding the sale of Exton Square Mall is related to PREIT’s bankruptcy troubles. Based on these challenges, the Pennsylvanian developer brought in new management last April and has been selling properties since then to reduce debts.
In 2024, PREIT sold Moorestown Mall’s Lord & Taylor shop. A Florida-based company is prepping to build an amusement center in the location. Other than this, it sold a Route 38 property to be used as a Cooper University Health Care outpatient center. PREIT wanted to use it as an apartment complex also.
In 2023, the Pennsylvania-based shopping center developer sold its Vineland-located Cumberland Mall.
About PREIT
Before bankruptcy issues, PREIT used to be a publicly held company. Moorestown and Cherry Hill were its top malls, with the former ranked in the fourteenth position. As of now, PREIT has 16 malls, mostly in the mid-Atlantic region.
The sale of Exton Square Mall reflects the move companies are forced to make amidst financial problems and changing consumer behavior. The plan of Abrams Realty promises to offer Philadelphia residents a new mixed-use development that will uplift the city’s real estate space.
